British American Tobacco (BAT) has agreed to pay a penalty of $110million to the Nigerian government for violating the Federal Competition & Consumer Protection Act and National Tobacco Control Act.
The Federal Competition & Consumer Protection Commission (FCCPC), in a statement, said the $110million penalty imposed on BAT was after a resolution of an investigation over a broad range of anticompetitive conducts.
The conduct includes abuse of dominance, seeking to frustrate competitors, penalise retailers for providing equal platforms for product display of competitors, and product introduction in violation of regulations among others.
“The Commission on August 28, 2020, opened an active investigation with respect to BAT which was based on the Commission’s satisfaction that a series of credible pieces of information and intelligence were actionable enough for broader and deeper inquiry with respect to certain conduct, for, by and on behalf of BAT parties,” FCCPC said.
FCCPC stated that the Federal High Court validated its stance that there was probable cause and sufficient evidence to exercise advanced statutory regulatory and investigatory tools on BAT.
“The Commission gathered, received and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence procured during, and after the search from other legitimate sources,” FCCPC said.
Following the closure of the investigation, BAT was mandated to pay $110million and will be subjected to a compliance and monitoring under the supervision of the FCCPC for a period of 24 months.
FCCPC said the sanction will ensure appropriate behavioral and business practices modification to be more consistent with compliance with prevailing competition laws/regulations and tobacco control efforts.
“Also, BAT shall provide written assurances to FCCPC which is in pursuant of section 153 of the FCCPa as required.”
